Snowballing debts!

One of the best way to get rid of debts really quickly is to overpay every month and that’s what I’ve been doing. I’ve given up everything but breathing to do this but it’s working and today I reaped the benefits of this. (Check out the link to a snowball calculator which shows how much less interest you will pay if you pay off your debts sooner. )

I ‘snowball’ debt payments, which mean I pay back as much as I can and as soon as one debt is paid, I snowball the next debt by moving the payment from the card/loan I have paid off onto the other debts so I never reduce the amout I pay each month and I keep over paying and eventually I clear the debts sooner, with less interest. (I pay £1000 in all a month towards: loans, cards and car payments)

I’ve previously tried to acquire a 0% transfer credit cards to move my debts into and had been turned down until I got a Santander card, which I’ve now almost paid off. I pay 83% more than the minimum payment! I am doing the same with my existing Halifax balance and I overpay that by 66%! I’ve been offered another balance transfer deal from Santander, which means I can stop paying the 17.5% to Halifax. I can pay off my debts even quicker.

I reach a milestone on the next pay day as that is when I am paid for the overtime I have done since November and will use that lump sum to pay off half the balance of my Halifax credit card. The existing balance will be paid off, with the interest free option by October this year.

Everytime I hear the little voices that tell me to keep a bit of the money I earn and treat myself; I make sure I ignore them and do without everything I can possibly live without and pay back every last penny as quickly as possible. The result of the privations will mean I will have no credit card debt in 6 months time!! I will then just snowball the payments in the direction of my bank loan and car payments! It’s amazing how a snowballing technique soon turns into an avalanche and I know I will be completely debt free by 2012.


10 thoughts on “Snowballing debts!

  1. oooo, that little voice encouraging you to go and buy a little treat visits you as well, does she? It was her who helped us build up most of our debts in the first place – she just doesn't give up, does she? :o)

    I've been using that site you have linked to – it's a great little tool, isn't it? To see the amount of interest that can be saved is really motivating.

    I love how determined you are to pay these debts off – it may not be great fun now but 2012 is not far away and then you will be debt free!


  2. yayyy for you, I am doing this too, although i have not so much of a budget to play with, but stillpayign as much as I can when i can, trying to get more disciplined with myself so that i can pay every spare penny I can off my debts,


  3. Well done! I am in exactly the same situation as you and doing the same. I dont know how we got in this position as I thought, according to the Daily Mail/Express, that us teachers were seriously well paid with too many holidays!!!!!!!!!


  4. Hi Fran – I'm well paid if I : didn't have the commute to pay for; if I didn't have a mortgage that takes up half of our combined income due to high costs of homes in Cornwall, if school holidays were paid for – NB TEACHERS ARE ONLY PAID FOR 40 WEEKS AND THE SALARY IS SPREAD OVER 52 WEEKS!!!! if food and utilities were not so high (South West Water – most expensive in the country and no other option here!!!!) so I'm well paid, but it's spread thin!


  5. my little voice wanting to buy treats etc is called hubby!

    we've not been able to snowball as our debts are all at debt collectors now, so we stopped paying interest years ago, mind you we've had some hassle from the creditors at the beginning and sometimes still do but we are slowly paying them off – total is £22k at the last check. we're on our own now dealing with creditors because we didn't want to go bankrupt the local CAB we were with closed our case!
    Josie x


  6. I agree, the money has to go a long way and I would also like to add that although we get 12 weeks holidays on paper, in reality we don't with lesson planning, classroom arranging, meetings etc etc.


  7. I applaud Jane and everyone for getting to grips with their debts. It takes great courage and strength to stick with it, and if you keep the end result in mind, at least you know you will get there eventually.

    Although I am past crisis point now, I have been fortunate to only get into a small debt situation, and that little bit of time owing money was scary. I have sailed close to the wind, with little or no income, but have managed to pull myself back up again. Good luck, and best wishes, stick at it.


  8. You are doing a great job, we simply can't snowball at the moment, especially with having little fella. However, I have started piggybanking for Christmas and feel immense satisfaction about it, more in control. We've also recently changed mortgage providers and discovered, we own more equity in our house than we thought. Thank goodness we didn't follow our friends when they remortgaged and spent the cash, they are now in negative equity. It's hard but things like that make us realise it could be worse.
    Twiggy x


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